A sudden rise in the market demand in a competitive industry leads to
a. A short run market equilibrium price higher than the original equilibrium
b. A market equilibrium higher than the short run price
c. Some firms exiting the market
d. All of the above
a
You might also like to view...
Bruce the Bank Manager can reduce interest rate risk by ________ the duration of the bank's assets to increase their rate sensitivity or, alternatively, ________ the duration of the bank's liabilities
A) shortening; lengthening B) shortening; shortening C) lengthening; lengthening D) lengthening; shortening
Cournot duopolists face a market demand curve given by P = 90 - Q where Q is total market demand. Each firm can produce output at a constant marginal cost of 30 per unit. If the duopolists behave as a shared monopoly, the equilibrium price and total quantity of output will be
A. Q = 45, P = 45. B. Q = 30, P = 60. C. Q = 40, P = 50. D. Q = 60, P = 30.